Enterprise Products Partners LP has sold out capacity at its planned 1.65 billion pounds/year propane dehydrogenation (PDH), which is scheduled to begin operation during the third quarter of 2015. In anticipation of a continuing decrease in supplies of propylene, Enterprise is in talks with additional customers that could lead to the development of additional PDH capacity, the company said. Last June Enterprise said it would build a PDH facility on the Texas Gulf Coast that would consume up to 35,000 b/d of propane to produce 1.65 billion pounds/year (750,000 metric tons per year or 25,000 b/d) of polymer-grade propylene (PGP) (see Shale Daily, June 22, 2012). The facility is to be integrated with the partnership’s existing propylene fractionation facilities, which have capacity of 5.3 billion pounds/year. The PDH facility will also be integrated with Enterprise’s PGP storage facilities, 102-mile distribution pipeline system and export terminal. “This [PDH capacity] demand is being driven by the combination of a 38% decrease in propylene supplies since 2006 due to additional ethane consumption by U.S. petrochemical companies and the growing supplies of domestic propane from the U.S. shale plays,” said Jim Teague, COO of Enterprise’s general partner.
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Industry Brief
Idaho regulators last Friday gave Intermountain Gas Co. emergency authority to sell up to 100,000 gallons of liquefied natural gas (LNG) from its Nampa, ID, liquefied natural gas (LNG) facility to aid residents at nearby West Yellowstone, MT, where LNG shortages are anticipated due to a power outage that could leave residents without heating fuel, a spokesperson for the Idaho Public Utilities Commission (PUC) said. West Yellowstone’s natural gas supplier, Energy West, notified Intermountain last Thursday that its chief supplier had been shut down because of a power outage in southwest Wyoming. The power outage, combined with a cold snap, left Energy West in a tough position for finding alternative LNG sources, the PUC spokesperson said. Intermountain, which isn’t authorized to sell LNG, said it had adequate LNG supplies in storage, and Energy West has a truck-trailer it can use to transport the emergency fuel. Charges for the emergency supplies will be determined after Intermountain files an LNG tariff schedule with the PUC.
Colorado Poised to Make Drilling Rules Mandatory
After relying on industry voluntary actions regarding drilling setback and water sampling approaches, Colorado regulators are poised to establish new mandatory rules covering exploration and production (E&P) companies.
Industry Brief
McMoRan Exploration Co. remains stymied in efforts to unlock production from the Davy Jones No. 1 well in the Gulf of Mexico’s shallow waters after operations designed to unblock perforations using a propellant stimulation gun had “limited success.” The New Orleans-based producer now plans to reperforate the well on South Marsh Island Block 230 with electric wireline using tubing guns. Davy Jones, which McMoRan operates, is part of an ultra-deep natural gas structure encompassing 20,000 acres on four blocks of the Outer Continental Shelf. In late November McMoRan said it still was struggling to bring the prospective No. 1 well online, which was supposed to be flowing 50 MMcf/d last summer (see Daily GPI, Nov. 28). McMoRan holds a 63.4% working interest with Energy XXI (15.8%); JX Nippon Oil Exploration (Gulf) Ltd. (12%); and Moncrief Offshore LLC (8.8%). In early December Freeport-McMoRan Copper & Gold Inc., whose top executives also run McMoRan, agreed to to buy the company, as well as Plains Exploration & Production Co., for $9 billion (see Daily GPI, Dec. 6).
Blue Racer JV Expands Midstream Services in Utica
Dominion and Caiman Energy II LLC on Thursday said they are forming Blue Racer Midstream LLC, a $1.5 billion joint venture (JV) that would provide midstream services to natural gas producers operating in the Utica Shale in Ohio and portions of Pennsylvania.
Industry Brief
Michael Peevey, long-time president of the California Public Utilities Commission (CPUC) is under fire from state utility consumer group The Utility Reform Network (TURN) for allegedly railroading through the commission a research project that could cost private sector energy customers up to another $150 million. TURN is urging state lawmakers to “rein in” Peevey for apparently pushing through CPUC an arrangement between Lawrence Livermore National Laboratory (LLNL) and the state’s major investor-owned utilities to create a cooperative research institute. CPUC plans on Thursday to consider authorizing the utilities to cover research project costs with LLNL of up to $152.19 million.
Marcellus: A Source for More NGVs?
Pennsylvania continues its support for natural gas use to power vehicles.
Canada OKs Nexen-CNOOC Deal
Late Friday the government of Canada gave its nod to the deal, which has shareholder approvals but needs OKs from the U.S. and British governments.
ExxonMobil, Imperial Assessing BC LNG
ExxonMobil Corp. and Imperial Oil Ltd. are in the “very early stages” of planning a business to export liquefied natural gas (LNG) from British Columbia’s west coast, Imperial CEO Bruce March said last week.
Triangle Amped Over Williston JV
Triangle Petroleum Corp. recorded the first profitable quarter in its history, is on track to meet its production goals and is excited about the possibilities from a joint venture (JV) in the Bakken Shale, officials said last week.
